Regency Fincorp has successfully raised ₹50 crore via NCDs and reported a strong 45% quarter-on-quarter growth in its secured loan book for Q1 FY27. The company is also reducing unsecured exposure and aims for higher AUM.
Regency Fincorp Completes ₹50 Crore NCD Issue, Boosts Secured Lending
Regency Fincorp Limited announced the successful closure of a ₹50 crore listed Non-Convertible Debenture (NCD) issue. The company also reported a significant 45% increase in its secured loan book during the first quarter of FY 2026-27.
Reader Takeaway: Capital raise supports growth; risk reduction strategy is underway.
What just happened
Regency Fincorp has successfully raised ₹50 crore by issuing listed NCDs. This capital infusion is aimed at supporting its capital and liquidity needs as the company embarks on an expansion phase.
Why this matters
The fundraising provides Regency Fincorp with the necessary resources to fuel its growth strategy. The company's focus on expanding its secured loan book and reducing unsecured exposure indicates a strategic move towards improving asset quality and potentially lowering its risk profile, which is crucial for investor confidence.
The backstory
As of March 2026, Regency Fincorp's Assets Under Management (AUM) stood at ₹261 crore. The company has been actively managing its portfolio composition. Its unsecured loan exposure was at 26% in March 2026, a figure it aimed to reduce.
What changes now
With the ₹50 crore NCD issue completed, Regency Fincorp is better positioned to grow its loan book. The secured loan book jumped from ₹159 crore in March 2026 to ₹230 crore in June 2026, a 45% rise. Unsecured loan exposure has decreased to 18% from 26% in the same period. The 'Cash My Salary' digital platform contributed ₹23 crore to the loan portfolio.
Risks to watch
While the shift to secured lending and digital diversification is positive, investors will watch the company's ability to manage the asset quality of its newly developed digital loan portfolio and sustain the rapid growth momentum.
Peer comparison
Information on peer comparison is not available in the provided filing text.
Context metrics (time-bound)
- Secured Loan Book Growth: Increased by 45% from ₹159 crore (March 2026) to ₹230 crore (June 2026).
- Unsecured Loan Exposure Reduction: Decreased from 26% (March 2026) to 18% (June 2026).
- Digital Loan Portfolio: ₹23 crore generated by the 'Cash My Salary' platform.
- Total AUM (March 2026): ₹261 crore.
What to track next
Investors should monitor the company's plans for an additional ₹150 crore fundraise and its progress towards the AUM target of ₹500–550 crore. The performance and asset quality of the digital lending segment will also be key.